Pension fund Irish Life is to buy a stake in the special-purpose vehicle that owns Nama, according to the Irish Independent.
The SPV had comprised a consortium of New Ireland Assurance, Irish Life Investment Managers and a group of clients of Allied Irish Bank Investment Managers. However, this arrangement was terminated when the state bought Irish Life because EU statistics agency Eurostat said Nama debts could no longer remain off-balance sheet if the state held a majority stake in the SPV.
The state now holds a 49% stake.
The news of Irish Life’s investment comes as Eurostat was becoming increasingly concerned about finding a new investor from the private sector.
According to a source close to the deal, the investment will provide a government bond-like return. The investor will receive a percentage of Nama profits, but profits above this will be returned to the state. Under the structure, investors will also be insulated from losses if Nama fails to return a profit.
sophia.furber@estatesgazette.com
